$32 Billion California’s Budget Deficit, $10 Billion Higher Than Previous Estimates

The state of California’s budget deficit is higher than previous estimates earlier this year, California Gov. Gavin Newson announced last Friday, Fox News reported.

California’s Budget Deficit (PHOTO: LinkedIn)

California’s Budget Deficit

Last January, when Gov. Newsom offered his budget proposal he said in a press release that California’s budget deficit has grown nearly $32 billion. He said, “We have a $31.5 billion challenge, which is well within the margin of expectation and well within our capacity to address.”

The state of California has the largest budget in the nation, with $306 billion. Despite this, California is one of the few states to have a shortfall this year.

About $9.6 billion in spending cuts hit some of the state’s programs and policy areas included by Gov. Newsom in his proposed ideas to cover the deficit. While his latest proposal includes another $1 billion for spending reductions.

Gov. Newsom is making up the rest of the budget deficit by shifting expenses and taking some money from the state’s safety net reserve and also borrowing.

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California’s Budget Deficit Proposal Blasted By Republicans

Governor Newsom’s proposal has been blasted by Republican legislative leaders. The Republican leader said it marks another irresponsible spending by the Democrats who control Sacramento.

Republican Assembly Leader James Gallagher said that Gov. Newsom’s cuts to drought programs are dangerous and that California deserves better. His fiscal gimmicks are another empty promise. he added.

On the other hand, the budget shortfall comes exactly a week after a committee has established by Newsom which recommends cash reparations to Black residents in California to amend Black people.

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